Put-call parity relationship - The relationship between the price of a put and the price of a call on the same underlying security with the same expiration date, which prevents arbitrage opportunities. Holding the stock(s) and buying a put will deliver the exact payoff as buying one call and investing the present value (P.V.) of the exercise price. The call value equals C=S+P-PV(k).
Put-call parity relationship : the relationship between the price of a put and the price of a call on the same underlying security with the same expiration date, which prevents arbitrage opportunities. holding the stock(s) and buying a put will deliver the exact payoff as buying one call and investing the present value (p.v.) of the exercise price. the call value equals c=s+p-pv(k).
Put-call parity relationship